Indian fintech startup Kiwi is set to raise ₹200 crore in its upcoming Series B funding round, according to reports. The round will be led by Vertex Ventures, with continued backing from Stellaris Venture Partners and Nexus Venture Partners, both of whom had invested in earlier rounds.
This fresh capital will help Kiwi scale its “Credit on UPI” product, a category it pioneered in India, and boost customer acquisition across Tier-1 and Tier-2 cities.
Kiwi’s Journey So Far
- Founded in 2022, Kiwi quickly established itself as a leader in the Credit on UPI segment by issuing virtual credit cards linked to UPI payments.
- The startup had raised $13 million (~₹108 crore) in its Series A round in November 2023, led by Omidyar Network India.
- At that stage, Kiwi had already issued over 25,000 virtual credit cards and set a goal of reaching 500,000 users by the end of 2024.
The new Series B raise of about $23 million (~₹190–200 crore) will significantly accelerate these growth plans.
Why This Funding Matters
The Indian fintech market is growing rapidly, with UPI transactions crossing 14 billion monthly in 2025. Kiwi’s model of enabling credit payments via UPI taps into this massive adoption, giving users flexibility while ensuring banks expand their credit reach.
Industry analysts believe Kiwi’s expansion could:
- Strengthen credit penetration in underbanked regions.
- Help banks reduce risk by linking credit issuance with UPI’s real-time settlement system.
- Push India closer to becoming a cashless economy.
Competitors and Market Context
Kiwi faces competition from fintech players like OneCard, Slice, and Paytm, which also offer digital-first credit solutions. However, Kiwi’s deep UPI integration gives it a unique positioning.
With ₹200 crore in new funding, Kiwi plans to:
- Launch new credit card partnerships with banks.
- Enhance its mobile app experience with AI-powered spending insights.
- Expand aggressively beyond metros into Tier-2 and Tier-3 cities.
Final Takeaway
The move for Kiwi to raise ₹200 crore marks a strong vote of confidence in India’s digital credit ecosystem. As UPI becomes the backbone of financial transactions, Kiwi’s innovation at the intersection of credit and UPI could make it one of India’s most influential fintech startups in the coming years.